Relocation package questions

[Janeway]

I know we know nothing yet, BUT,

 

since husband is applying for jobs out of state that have relocation as well as local jobs, I thought it would be good for us to do what we can to fix up the house in case we sell it. Paint costs, but is not too expensive, so we were working on that. 

 

There is a big job that would have to be done if we were to sell. Our master bath has wall paper.  On the edges, it is peeling. It is nothing so bad that I would change it out now if we stayed. In fact, if we stayed, I would likely paint that bathroom a blueish or a greenish color eventually. But the wall paper would stay for now if we did not move. To change the room, it would take days and a lot of labor. The wall paper would need to be removed. Then the walls repaired and textured. And then painted. We actually did this at our last house before selling. 

 

I mentioned to a friend that we were about to start on that and she told me not to. She said some relocation packages will give us the option of giving us a price for the house and it will be a little lower than what we would sell for, but not a lot, and we can opt to take it or we can opt to stay and try to sell ourselves. 

 

Well, even if they took 5-6% off the market value for the house, that would be worth it to us. I am already dreading trying to keep a house clean and showing it. And I did not find showing a house to be pleasant in the past. People looking at your house can be nasty. I had marks left, toilets pooped in and not flushed. I had left toilet paper, but yet, people managed to find paper towels and put them in the toilet. I have no clue what anyone was thinking!

 

Does anyone know if companies do this? It was never offered for past relocations, but, in the past when we relocated, husband was at a lower level and/or we had been renting.

[Bambam]

The relocation packages we've had - you get a couple of estimates of a sales price from different real estate agents. You work with the relocation company to determine a target price. The last time, if the house sold at or above that target prices, we got all the proceeds plus a extra percentage. (So more money than we would have gotten had we just sold the house ourselves). But if the house did not sell with 3-4 months (one or the other), then the company paid us that target price. You could sell the house to a different private party for less than the target prices, but that was all you got. So, why would anyone in their right mind sell the house for less than that target price? No clue. BTW, the company was paying all the interest and utilities once we moved. 

 

We did touch up paint before we left any house had the carpets cleaned (if needed). Otherwise we didn't do anything. For the one house that could have used new carpet, we offered a flooring allowance so the new owners could pick out a flooring that they liked. I'd do the same with any wall paper. Because the colors I like might not be the color a new purchaser would like. Everything still looked nice. We didn't want to mess with painters or flooring installation. 

 

We have noticed that relocation packages aren't as generous as they used to be. This last time, I had to do the unpacking vs. having them do it for me. I'm fine with that, but it was nice to have someone do all the unpacking. 

 

Our relocation packages have included all moving expenses (packing, boxes, truck, actual movers, etc) and usually a month or so salary for incidental expenses. Closing costs on both houses are covered. Apartment at new job site covered for 1-2 months. One house hunting trip for the family is included. They make interest payments on the old house once you've closed on the new house, but you pay the principal (cause you will get it back anyway). It is wonderful because you are out no money and typically come out ahead. Taxes are a pain though. 

Edited January 8, 2017 by Bambam

[displace]

I've only lot heard of relocation packages including the actual relocation expenses (trucks, storage - maybe, boxes, etc).

[Lanny]

When a late friend transferred from NY to TX years ago, the company bought their house in NJ.  I think it was on the market for about 2 years before they sold it.  Try to get the new employer to take your current house off of your hands and let them be the ones to sell it.

 

That company (an airline whose name you know) paid to ship one of their cars in the moving van with their stuff.

 

I once worked on a temporary contract assignment (in AL) where the client corporation hired a young Engineer who was in San Antonio TX.  I forget where he'd been before San Antonio), but his new employer in San Antonio paid the head hunter and his moving costs, etc. Two weeks after he  got to San Antonio, he was laid off.   

 

I would TRY to get some kind of protection, in case things went South and I moved to a new city/state and then got laid off there, based on what happened to that guy.  I'm not sure, but I would try to get that included in the written contract.

 

DO NOT HAVE ANYTHING AMBIGUOUS IN THE WRITTEN CONTRACT.  BEST TO HAVE AN ATTORNEY HELP YOU WITH THAT.

 

TAXES?  

Edited January 8, 2017 by Lanny

[FaithManor]

We moved cross country three times for generous job offers and not one included help selling the house. There was a small sign on bonus, large pay raise, and a moving stipend for us to figure out how best to use, and no help with temporary housing either.

 

I am not certain I would hold out on getting the house ready for sale given the current job market which has been a primarily in favor of employer market since the mortgage debacle.

[Guest2]

Some relocation packages we have had have been veriy generous. Most of the time, we move before selling, just have papers signed for it to go on the market as soon as we are out and it is cleaned. We aren't there for the open houses/ showings. Our package has even included reimbursement for housing loss ( i.e. Paid more than can sell it for). I don't think I have ever heard of that for a new hire though, only if you were with the company when you bought and sold the house due to corporate moves.

Could you get some adhesive and tack down the wallpaper? If you really need to paint over it, aren't there primers for that? Alternatively could you just put a up a textured wallpaper nuetral like sea grass or something over exsisting paper? I would not take on removing wall papers and doing repairs and painting prior to moves. Good luck!

Edited January 8, 2017 by Silver Brook

[Guest2]

The relocation packages we've had - you get a couple of estimates of a sales price from different real estate agents. You work with the relocation company to determine a target price. The last time, if the house sold at or above that target prices, we got all the proceeds plus a extra percentage. (So more money than we would have gotten had we just sold the house ourselves). But if the house did not sell with 3-4 months (one or the other), then the company paid us that target price. You could sell the house to a different private party for less than the target prices, but that was all you got. So, why would anyone in their right mind sell the house for less than that target price? No clue. BTW, the company was paying all the interest and utilities once we moved.

 

We did touch up paint before we left any house had the carpets cleaned (if needed). Otherwise we didn't do anything. For the one house that could have used new carpet, we offered a flooring allowance so the new owners could pick out a flooring that they liked. I'd do the same with any wall paper. Because the colors I like might not be the color a new purchaser would like. Everything still looked nice. We didn't want to mess with painters or flooring installation.

 

We have noticed that relocation packages aren't as generous as they used to be. This last time, I had to do the unpacking vs. having them do it for me. I'm fine with that, but it was nice to have someone do all the unpacking.

 

Our relocation packages have included all moving expenses (packing, boxes, truck, actual movers, etc) and usually a month or so salary for incidental expenses. Closing costs on both houses are covered. Apartment at new job site covered for 1-2 months. One house hunting trip for the family is included. They make interest payments on the old house once you've closed on the new house, but you pay the principal (cause you will get it back anyway). It is wonderful because you are out no money and typically come out ahead. Taxes are a pain though.

This is our experience with corporate moves as well.

[prairiewindmomma]

It's becoming less common when switching companies.  It typically happens more when a company is relocating you internally.

 

There are some relocation companies that will offer to buy your house if you use their realtor, their set price, and it doesn't sell within a typical market period.  That said, your analysis isn't rational from a financial point of view.  Let's say that your house is worth $225,000 (close to median).  And, they put your house on the market for $200,000 to try to get it to sell quickly.  If it sells quickly, you've sold it for way less than market value. And if it doesn't sell, they pay you 6% less than asking price. 6% of $200,000 is $12,000. You go from getting a potential $225k for your home to $188,000k.

 

It really depends on market dynamics, which is why you should be contacting other realtors now to get an idea of valuation on your home, marketing plans, etc.  Spring selling season is coming up.

 

Removing wallpaper is a pain in the butt.  BTDT.  But your dh is home and capable. :)

[gardenmom5]

my dd bought a house from a relocation company.  i've no idea what else they did.  (neutral paint, neutral carpet, yard maintenance.)   the owner had taken his job and was long gone.   the relo co absolutely did not care about top dollar (for which we are grateful - as it was already at the top of her price range). all they had to do was have their open house  through the weekend, and take best offers on monday.   instead, they had three offers midweek (2 the first day), and dd's was the best. over the weekend - after she'd given her earnest money on friday - they had at least half a dozen people who wanted to write an offer.  but it already  had an accepted offer, it just hadn't hit the mls.

[Laurel-in-CA]

DH's relocation package include two PODs for moving, with storage for several months. We did a split move, where he moved first and they put him up in long-term hotel room while I stayed and sold and packed the house. The kids and I didn't move until escrow closed and then we had a 3-week lapse between close of escrow on old house and new one. DH had found a family, thru a church he visited, with extra rooms for the kids and I to stay in.....we could have tried to put 5 people in his hotel room but it would have been a recipe for disaster. 

 

He started in June; we moved in October. I think he got some extra bonus that year, which helped to cover things like boxes and such. That may have been because they expected our relocation to take up to 6 mo. and it was a bit shorter.

 

We painted our acoustic ceilings and spruced up the yard before moving (no wallpaper to worry about), pulled up old carpet to expose wood floors, but that was it. I think the new owner came in and removed the ceilings anyway. Our real estate agent told us that all we should do before showing was pack up our books and complete "delayed maintenance."